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Written by Sunil Tinani
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Sunday, 15 June 2008 |
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Page 1 of 2 A simple step-by-step template for a DIY business plan.
PART I: The Template — Cover sheet Business Name Address Contact Number/s — The Business Objective page (State the company's mission and goals on this page) — Index — Part A: About the business Business description (detailed) and form (sole proprietorship, partnership or limited company); Market description (describe the market wherein the business operates, its size, what % of market share does the business expect to capture, market's growth potential, demographics); Customer profile (detailed note); Competition (note on competitors and whether it is viable entering into such a market, how you can score over the competition); How does the selling price of the business's product compare to prices of similar products? Business location (give advantages and disadvantages); Management (a profile of top management – include duties, educational qualifications and work experience); Key personnel (brief profile required for all key managers); Social responsibilities of the business; Availability of skilled manpower; A note on the state and central laws that govern the business (pay special attention to labor laws); A note on the employee training program, if any.
— Part B: Financials Why is money required? Statement of sources and application of capital and loans; Investment in long-term assets (details); Working capital (detailed computation with special emphasis on credit cycles for both debtors and creditors); Existing Profit & Loss Account (for the last 3 years (maximum)); Existing Balance Sheet (for the last 3 years (maximum)); Existing Income tax records (for the last 3 years (maximum)); Projected Profit & Loss A/c (3 years projections with all explanations, details to be given monthly for the 1st year and quarterly for the subsequent years); Projected Balance Sheet (3 years projections with all explanations); Projected cash flow statement (3 years projections with all explanations, details to be given monthly for the 1st year and quarterly for the subsequent years).
— Part C: Documents Copies of relevant documents such as work contracts, letters of intent, lease deeds, references, applicable legal opinions, market survey reports, income tax orders, credit reports and other applicable documents that are critical to the business plan must be contained here.
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